Jindal Stainless - Strategic Growth Drivers In Place: Systematix

Systematix Research Report

Jindal Stainless Ltd., reported revenue of Rs 94.5 billion (-3%/+4% YoY/QoQ), Ebitda of Rs 10.4 billion (-10%/-17% YoY/QoQ) and Ebitda margin of 17% (-76.5 bps/-270.3 bps YoY/QoQ) during Q4 FY24.

Stainless steel volumes at 570.3 kt increased 12%/11% YoY/QoQ, respectively, in Q4. With operations ramping up at its recently commissioned 1.1 mt capacity expansion at Jajpur plant in Odisha, Jindal Stainless achieved consistent volume growth during the year.

Blended realisation declined 14%/7% YoY/QoQ during the quarter, respectively, to around Rs 1,65,755/tonne, mainly as nickel prices fell continuously throughout the year.

On a per ton basis, the company reported Ebitda of Rs 18,150 (-19%/-25% YoY/QoQ). Jindal Stainless recorded FY24 revenue and Ebitda of Rs 385.6 billion (+8% YoY) and Rs 47 billion (+31% YoY), respectively, with volumes up 23% YoY at 2.17 mt.

The blended realisation for the year fell by 22% YoY to Rs 1,77,331/tonne, as stainless steel prices trailed the continuous slide in nickel prices.

Rampant stainless steel imports from China throughout the year added to the price pressure. FY24 Ebitda margin improved to 12.2% from 10% in FY23, as higher volumes translated into better operating leverage.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.